SOUTH HADLEY – PeoplesBank has made a major donation of $200,000 toward a new building for the South Hadley Public Library.

Dr. Mitchell Resnick, head of the trustees of the library, made the announcement at an open house reception at the current library Wednesday.

“We’re happy to be part of the future of the South Hadley Public Library,” said Jacqueline Charron, a vice president of PeoplesBank, who attended the event with three colleagues.

“It’s a way to preserve the health of the community and a means to ensure future vitality,” said Charron, noting that 26 employees of PeoplesBank live in South Hadley, including the CEO.

The Library Building Committee plans to erect its new building in the Falls section of town, where the Northeast Utilities Building used to stand near the Connecticut River.

The town purchased the site last year to fulfill part of the arduous task of applying for a grant from the Massachusetts Public Library Construction Program.

The efforts of supporters were rewarded when the program came through with a grant of $4,841,312 in July, awarded on the condition that the town raise the rest of the needed funds by January 31, 2012.

The donation from PeoplesBank gives another major boost to the project.

“Everybody who has anything to do with the library has been talking for years about building a new one,” said Carole Sullivan, vice president of Friends of the South Hadley Public Library, who seemed dazzled at how much has happened in the past year.

“I was hoping this day would come, and I’m thrilled that it has,” said Resnick, described by himself and others as having a passion for the project. “We’ve worked hard to get to this point.”

While guests surveyed architectural drawings of the proposed building, library director Joseph Rodio gave a tour of the current library, built in 1906 with a grant from Andrew Carnegie, to show why the town needs a new one.

Pointing to shelves that held volumes of Civil War records, Rodio explained that mold had seeped through the brick exterior and into the wooden shelves.

“We discovered that the books were supposed to act as insulation,” said Rodio. “When we moved them, we found a lot of white mold.” (Fortunately, the books can be saved.)

The main part of the library is filled to capacity, said Rodio. “Every year, as we order new books, we have to pull out a large number of others. You lose a real depth to the collection that way.”

Books that have not been checked out in three years are on a “hit list,” he said.

Here are some of the coming events related to the new library.

On Oct. 9, there will be a free fall festival to celebrate the library at Canal and Main Streets, site of the future library. Family-oriented activities will include food vendors, a balloon man, and music by Cottonwood.

Also, plans are under way for a November wine-tasting fundraiser, with a passing mention of chocolate. For more information, call (413) 538-5045.